The PBR's Bingo Tax cut is more a whimper than a bang

The PBR's Bingo Tax cut is more a whimper than a bang

December 09, 2009 1:35 PM

Amongst the gigantic storm tearing through the public finances, there was one tax cut that will undoubtedly grab attention in today's Pre-Budget Report: reducing bingo tax.

Bingo, whilst not the world's most important issue, is indeed suffering severely as an industry. On top of the recession, the smoking ban has decimated the sector. Until earlier this year, it had also been struggling under double taxation - Bingo Duty and VAT.

So, Alistair Darling's triumphant announcement that he intends to cut Bingo Duty from 22% to 20% is welcome news, isn't it? Well, while 2% less is an improvement, the industry could be forgiven for feeling somewhat hard done by - the Duty was only 15% until this year's Budget raised it.

Clearly the Chancellor has realised that the 22% rate was too punitive and was doing serious harm. It's a pity he didn't decide to reverse his other tax hikes, too.

Amongst the gigantic storm tearing through the public finances, there was one tax cut that will undoubtedly grab attention in today's Pre-Budget Report: reducing bingo tax.

Bingo, whilst not the world's most important issue, is indeed suffering severely as an industry. On top of the recession, the smoking ban has decimated the sector. Until earlier this year, it had also been struggling under double taxation - Bingo Duty and VAT.

So, Alistair Darling's triumphant announcement that he intends to cut Bingo Duty from 22% to 20% is welcome news, isn't it? Well, while 2% less is an improvement, the industry could be forgiven for feeling somewhat hard done by - the Duty was only 15% until this year's Budget raised it.

Clearly the Chancellor has realised that the 22% rate was too punitive and was doing serious harm. It's a pity he didn't decide to reverse his other tax hikes, too.

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